The CPI report that came out on Tuesday had quite the impact on the market intraday but historically these news items have little to no impact on changing the market’s long-term direction.
Images like the one below shared by so-called experts with ‘Head this’ or ‘Chief that’ in their profiles along with a clickbait title are being plastered, retweeted and commented on across all platforms.
By allowing yourself to not fall into this noise, you greatly increase the chances of creating a portfolio that performs. It is important to remember that when it comes to accountability later on in life, these ‘experts’ won’t be around. Just you and your decisions.
The good news is that this can easily be avoided, and you will see a complete change in your performance if you are driven enough to make the necessary changes.
The questions you have to ask yourself are:
- What impact do these reports have on overall market conditions?
- What do I need to know or do to protect my portfolio?
First, let’s have a look at the impact of the CPI report:
- The S&P 500 fell by 4.5%
- The Nasdaq 100 fell by 5.5%
- The Dow Jones 30 fell by 4%
However, overall the stock market is still inside the range it has been trading in since the price found support in June. The CPI report has had little to no impact in affecting this.
The major indices since the CPI report have found support, and there has been no significant change in market conditions. The price on the S&P 500 is still…
